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Russia's GV Gold will try to sell shares in London by July

OAO GV Gold, a Russian gold producer that delayed its initial public offering in February, will try to sell shares in London again and list by July.

„We still plan to conduct an IPO in the Q2 of this year, after last year's financials are published according to international standards in April,” President Sergei Vasiliev said by phone from Bodaibo, east Siberia, where the miner's only asset is based. OAO GV Gold postponed a share sale set for mid-February, citing investor preference. Investors and analysts including Aton Capital's Vladimir Katunin said the offering was priced too high given a slump in emerging markets and the company's reliance on one deposit, the Golets Vysochaishy mine in the Irkutsk region. The company, Russia's seventh-largest gold producer, will offer less than 50% of its capital during the IPO, Vasiliev said. „The main shareholders would like to keep control of the company,” which they value at $450 million to $500 million, he said.

GV Gold aims to woo investors back with low mining costs and its plans to boost annual output by 16%. The company plans to double production to 5 tons of gold, or 160,753 ounces, by 2010 and to maintain its costs at $205 an ounce. GV Gold's margin on earnings before interest, taxes, depreciation and amortization, a measure of how efficiently a company uses revenue, was 58% in 2006. (Bloomberg)